Automobile

Auto Insurance Lakewood, Colorado: What You Need to Know

Like most states, Colorado requires all drivers, including those who live in Lakewood, to carry auto insurance to operate a motor vehicle on state roadways. When shopping for auto insurance, Lakewood, Colorado, drivers are likely to pay higher rates than in other areas of the state due to a variety of factors.

Colorado Insurance Requirements

According to AutoInsuranceEZ, Colorado law mandates that all drivers purchase liability coverage with specific limits. That means if you live in Lakewood and are purchasing an insurance policy, it must include the following:

  • $25,000 in bodily injury liability coverage per person
  • $50,000 in bodily injury liability coverage per accident
  • $15,000 in property damage liability coverage

    AutoInsuranceEZ notes that liability insurance only covers the other driver’s car repair and medical care expenses. If your car is damaged in an accident or a natural disaster and you only have liability coverage, you’ll have to pay for your car repairs out of pocket.

    How Much Do Lakewood Drivers Pay for Auto Insurance?

    The Zebra notes that Lakewood drivers pay, on average, $2008 a year for auto insurance. That’s higher than the Colorado average of $1757 a year, and it’s more than the annual nationwide average of $1548. One reason that Lakewood drivers pay much higher rates is the town’s high rates of auto theft. CheapCarInsurance reports that in 2015, Lakewood residents reported a total of 882 auto thefts. That’s 583 cases per 100,000 people. The national average for auto thefts is only 220.2 cases per 100,000 people.

    What Individual Factors Affect a Lakewood Driver’s Insurance Rates?

    If you’re a Lakewood driver shopping for auto insurance, you might end up paying more or less than the citywide average. That’s because insurance companies factor in your personal details when calculating your rates. According to The Zebra, providers usually consider the following:

    • Your Age: Teen drivers pay higher auto insurance rates than any other age group in Lakewood because they have less driving experience. If you’re a teen driver, you can expect to pay $4418 more a year for insurance than drivers in their 20s. Simply aging out of your teens will earn you a decrease in rates.
    • Your Marital Status: If you’re a married Lakewood driver, you and your spouse can save money by bundling all your household’s vehicles into the same policy.
    • Your Gender: While more insurance companies are starting to leave out a driver’s gender when calculating rates, some providers still charge different rates for female and male drivers. Depending on your provider’s policies regarding gender, you might have to pay up to 3 percent more for auto insurance.
    • Your Driving History: One detail that all insurance companies take note of is your driving history. If you have a clean record, you’ll be rewarded with lower auto insurance rates.
    • Your Credit Score: The insurance industry tends to correlate credit score with a driver’s reliability and responsibility. That’s why drivers with bad credit histories pay higher auto insurance rates. If you’re a Lakewood driver with a “Very Poor” score and you improve your score to the “Fair” tier, you’ll save up to $1401 a year in premiums. Moving from the “Very Poor” to the “Exceptional” tier can trigger a 57 percent decrease in rates.
    • Your ZIP Code: When you request a quote from an insurance company, the provider will look at how many auto thefts and acts of vandalism occur in your ZIP code. ZIP codes with higher rates of theft, vandalism, and uninsured drivers are more expensive to insure.

      Comparing Insurance Quotes for Lakewood Drivers

      Shopping around for quotes from various providers can help you save money on your auto insurance. That’s because each insurance company has its own formula for calculating rates, so prices vary from one company to the next. MoneyGeek gathered quotes for different groups of Lakewood drivers. Here’s what they found for drivers who want minimum coverage:

      • USAA: $283 a year
      • GEICO: $354 a year
      • State Farm: $500 a year
      • Travelers: $622 a year
      • Nationwide: $615 a year
      • Allstate: $728 a year
      • Esurance: $783 a year
      • MetLife: $820 a year
      • Farmers: $1005 a year
      • American Family: $996 a year
      • Progressive: $1384 a year

        If you opt for full auto insurance coverage, here’s what you can expect to pay, on average:

        • USAA: $655 a year
        • GEICO: $814 a year
        • State Farm: $1060 a year
        • Travelers: $1029 a year
        • Nationwide: $1182 a year
        • Allstate: $1214 a year
        • Esurance: $1161 a year
        • MetLife: $2065 a year
        • Farmers: $1909 a year
        • American Family: $2000 a year
        • Progressive: $2161 a year

          MoneyGeek also analyzed quotes for drivers with different types of violations on their record. If you’re a Lakewood driver with a recent speeding ticket, at-fault accident, or DUI on your record, these are your most affordable options:

          • USAA: $797 a year with a recent speeding ticket/$934 a year with an at-fault accident/$1257 a year with a DUI
          • State Farm: $1143 a year with a recent speeding ticket/$1226 a year with an at-fault accident/$1143 a year with a DUI
          • GEICO: $1031 a year with a recent speeding ticket/$1394 a year with an at-fault accident/$1894 a year with a DUI
          • Travelers: $1322 a year with a recent speeding ticket/$1356 a year with an at-fault accident/$1765 a year with a DUI
          • Allstate: $1326 a year with a recent speeding ticket/$1630 a year with an at-fault accident/$1557 a year with a DUI
          • Nationwide: $1363 a year with a recent speeding ticket/$1711 a year with an at-fault accident/$2069 a year with a DUI
          • Esurance: $1400 a year with a recent speeding ticket/$2353 a year with an at-fault accident/$1965 a year with a DUI
          • American Family: $2013 a year with a recent speeding ticket/$2013 a year with an at-fault accident/$2013 a year with a DUI
          • Farmers: $2337 a year with a recent speeding ticket/$2686 a year with an at-fault accident/$2624 a year with a DUI
          • Progressive: $2676 a year with a recent speeding ticket/$3503 a year with an at-fault accident/$2383 a year with a DUI
          • MetLife: $2509 a year with a recent speeding ticket/$3079 a year with an at-fault accident/$4464 a year with a DUI

            Check this out if you need additional information, resources, or guidance on car insurance.

            Sources:

            Lakewood, CO Auto Insurance | Cheap Car Insurance in Lakewood, CO | autoinsuranceez.com

            Lakewood, CO Car Insurance | thezebra.com

            Cheap Car Insurance in Lakewood, Colorado | cheapcarinsurance.net

            Compare the Cheapest Car Insurance Quotes in Lakewood, CO | moneygeek.com

            Best Car Insurance in Colorado: Everything You Need to Know | caranddriver.com

            Colorado Car Insurance Laws: Everything You Need to Know | caranddriver.com

            Car Insurance | caranddriver.com

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